Essay HM201: Financial Management for the Hospitality Industry Report Writing – Management Assignment Help

Assignment Task:

The Project

Assume that you are the Chief Financial Officer (CFO) of a world-class hospitality company listed in the Australian Stock Exchange (ASX) and you have been directed by your Chief Executive Officer (CEO) to undertake financial analysis and write a financial report to be presented to the Board of Directors. 

The Report

You are required to prepare a concise report of the financial situation of the company and key issues that may impact the company in the future; one page. Your assignment must be submitted in MS word format and only one file must me submitted. On page 3 of this assignment document is a ‘ratios summary table’. Please fill up the table first and then write your report based on the findings in the table. The table must be included in your assignment report.

The four main financial areas of the report to be covered are: 

1. The profitability;
2. The efficiency;
3. The liquidity; and
4. The gearing (leverage) of the firm.

The key ratios on which you must consider for your report are the following:

The Profitability Ratios: –

1. Return on Owners’ Equity.
2. Return on Total Assets.
3. Gross Profit Margin.
4. Net Profit Margin.
5. Total Operating Expenses Ratio.

The Efficiency Ratios of the Firm

6. Average Settlement Debtors Turnover Period.
7. Average Settlement Creditors Turnover Period.

The Liquidity Ratios of the Firm

8. The Current Ratio.
9. The Acid Test Ratio / Liquidity Ratio.

The Gearing (Leverage) Ratios of the Firm

10. Total Liabilities to Total Assets
11. Total Liabilities to Total Owner’s Equity